Tennant (TNC) risk factors, FY2024 10-K

Macroeconomic Risks

1. 01We may encounter financial difficulties if the United States or other global economies experience an additional or continued long-term economic downturn, decreasing the demand for our products and negatively affecting our sales growth
2. 02Our operations could be adversely affected by global economic volatility, geopolitical tensions, and regulatory changes
3. 03Our global operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk
4. 04Changes in foreign currency exchange rates could adversely impact our net sales and earnings

Industry Risks

1. 05We may be unable to take advantage of product pricing due to the competitive marketplace and increased price sensitivity
2. 06Disruption in the availability of, quality, or increases in the cost of, raw materials and components that we purchase or labor required to manufacture our products could negatively impact our operating results or financial condition
3. 07Increasing cost pressures could negatively impact our ability to achieve our strategic objectives and affect our financial results
4. 08We are subject to product liability claims and product quality issues that could adversely affect our operating results or financial condition

Operational Risks

1. 09Our ability to effectively operate our Company could be adversely affected if we are unable to attract and retain key personnel and other highly skilled employees, provide employee development opportunities and create effective succession planning strategies
2. 10Our growth strategy, expanding global footprint, changing workforce demographics and increased improvements in technology and business processes designed to enhance the customer experience are putting increased pressure on human capital strategies designed to attract, retain and develop top talent
3. 11We may not be able to develop or manage strategic planning and growth processes or the related operational plans to deliver on our strategies and establish a broad organization alignment, thereby impairing our ability to achieve future performance expectations
4. 12Complications with the design or implementation of our new Enterprise Resource Planning ("ERP") system that could adversely impact our business and operations
5. 13We may encounter risks to our information technology ("IT") infrastructure, such as access and security, that may not be adequately designed to protect critical data and systems from theft, corruption, unauthorized usage, viruses, sabotage or unintentional misuse
6. 14We may be unable to conduct business if we experience a significant business interruption in our IT systems, manufacturing plants or distribution facilities for a significant period of time
7. 15Our ability to manage the health and safety of our global workforce may lead to increased business disruption and financial penalties
8. 16We may consider acquisitions of suitable candidates to accomplish our growth objectives. We may not be able to successfully integrate the businesses we acquire to achieve operational efficiencies, including synergistic and other benefits of acquisition
9. 17Inadequate funding or insufficient innovation of new technologies may result in an inability to develop and commercialize new innovative products and services
10. 18We may encounter risks related to our business transformation and strategic initiatives
11. 19Ineffective execution of our employee value proposition strategy could exacerbate these issues, resulting in retention challenges, reduced morale, and lower workforce productivity